The Council of the European Union (EU) announced on Friday a one-year suspension of customs duties on key nitrogen-based fertilizers such as urea and ammonia, aiming to alleviate the impact of the Middle East crisis on EU farmers.
The blocked passage of the Strait of Hormuz, forced by the United States-Israel military operations against Iran, has disrupted about one-third of global fertilizer trade, driving up prices sharply. In April, the Food and Agriculture Organization of the United Nations warned that a prolonged blockade could trigger an agrifood catastrophe.
The measure is expected to save EU farmers and the fertilizer industry about 60 million euros (69.6 million U.S. dollars) in import duties, according to the Council's statement.
The tariff suspension does not apply to fertilizer products imported from Russia or Belarus. The measure will take effect on the day after its publication in the EU's Official Journal.
Currently, the EU already imports large volumes of fertilizers duty-free from countries with preferential access, but a significant volume still enters with tariff rates ranging from 5.5 to 6.5 percent.
To balance the interests of EU producers, the Council said the tariff exemption will be subject to a quota, set at the volume of most-favored-nation imports in 2024 plus 20 percent of the volumes imported from Russia and Belarus in the same year.
In 2024, the EU imported 2 million tons of ammonia and 5.9 million tons of urea, mainly used for nitrogen-based fertilizer production. Additionally, the bloc imported 6.7 million tons of nitrogen-based fertilizers and mixtures containing nitrogen.
EU to suspend key fertilizer tariffs
